The Verge has learned from its sources that Microsoft is planning to launch a free tier of Xbox Cloud Gaming. With the recent changes, the service required an active Xbox Game Pass subscription, which is marginally better than the original system of it being locked behind Game Pass Ultimate or a separate monthly subscription fee.
The free Xbox Cloud Gaming tier will be supported by ads, with players required to watch a two-minute ad before a session. However, users can only play for one hour at a time, with a cap of five total hours per month. These limits will likely increase as the service gains traction. As far as supported titles go, it will include games that you already own, some retro titles and a rotating cast of miscellaneous titles. Other details, such as the resolution and level of visual fidelity, are unknown at this point.
In its current state, Xbox Cloud Gaming maxes out at 1440p, so 1080p is a plausible figure. With the service finally out of beta, Microsoft likely wants to compete with Nvidia's GeForce Now, which also happens to have similar limits in its free tier. However, GeForce Now's flagship offering lets you game at 4K 120 FPS with raytracing enabled in supported titles. On the other hand, Microsoft has an ecosystem advantage with Xbox Cloud Gaming being seamlessly integrated with its wide range of hardware.